The main goal of the research is to define advantages and disadvantages of telework and smart work centres (SWC) and to evaluate main problematic development spheres in Balvi municipality. Research methods are the following: analysis and synthesis, quantitative data analysis, comparison, graphical methods. Smart work centre will be a real way how to increase the competitiveness of Balvi municipality; it will provide new working places, decrease unemployment and help maintain population in the municipality.